Ethanol gained a second day against gasoline as prices for the motor fuel plunged the most since November and as biofuel producers tempered output.The spread narrowed 8.88 cents to 66.44 cents a gallon at 1:54 p.m. New York time, the smallest difference since Feb. 12 and the biggest one-day contraction since Jan. 11, according to futures market data compiled by Bloomberg. More than a dozen ethanol companies have idled output since June to stem losses, and stockpiles have fallen to the lowest level in 10 weeks.“The thing to be looking at is production with the shutdowns in place,” said Jeffrey DeReamer, an ethanol broker at ICAP Energy in Lexington, Kentucky. “Production is the key at this point. That’s been supporting ethanol.”Denatured ethanol for March delivery rose 0.1 cent to $2.Visit Bloomberg for full article